MOMENTUM GROWING FOR VAT AND RATES CUT EXTENSION

MOMENTUM is growing behind the call for VAT and rates cuts to be extended beyond March 31 to support retail and hospitality sectors.

Major trade body UKHospitality is calling on businesses around the country to help back its calls on UK Government for an extension to pandemic reliefs.

The sector’s VAT cut to 5% and the business rates holiday are both set to end on March 31.

Rates are under Welsh Government control but would require UK Government to act first to secure the Barnett consequential funding to do the same.

UKHospitality boss Kate Nicholls is asking business owners, hospitality team members and patrons to go online and write to their MPs, telling representatives to back the body’s requests in Parliament.

Rishi Sunak’s 2021 Spring Budget will be announced on March 3,

Plaid MPs Liz Saville Roberts and Hywel Williams said: “No sector has been hit harder than the tourism and hospitality industry, and the economy of Gwynedd relies heavily on the revenue generated by the hard work of local businesspeople, sustaining thousands of jobs.

“There have been mounting calls from local businesses for further sector-specific support and assurances from government, given the necessary public health restrictions still in place.

“Last summer, the Chancellor bowed to industry and political pressure, and cut VAT on food, accommodation and attractions from 20% to 5%, providing some breathing space for struggling hospitality businesses.

“Plaid Cymru is calling on the Chancellor to extend this VAT relief to the hospitality sector.”